Tokenization is a strategic priority for 84% of financial institutions surveyed by Broadridge Financial Solutions, Inc., indicating its growing importance. (NYSE: BR) reveals that tokenization has become a strategic priority for the vast majority of financial institutions. Specifically, 84% of those surveyed consider it important to their business. This suggests a significant shift on Wall Street, moving beyond experimental blockchain use to integrate tokenized assets into core market infrastructure.
The “Broadridge Tokenization Pulse Survey” was released on July 16, 2026, in New York. It polled 200 senior decision-makers across wealth management, asset management, capital markets, and digital asset firms in the United States and Canada. The findings indicate a future where digital assets play a crucial, integrated role in traditional finance, rather than remaining a niche interest.
Financial firms embrace hybrid asset markets
Financial firms aren’t preparing for an entirely blockchain-native future, the survey found. Instead, a striking 92% of respondents anticipate that digital and traditional assets will coexist for the foreseeable future. This pragmatic perspective is actively shaping their implementation strategies.
Many institutions are prioritizing integration over complete system replacement. About 69% plan to embed tokenization capabilities directly into existing infrastructure. They intend to evolve current platforms rather than build entirely new blockchain-native systems from scratch.
Integrating tokenization into existing systems
This preference for integrating tokenization into current financial frameworks makes practical sense for large, established institutions. It aims to minimize disruption and allow for a smoother transition. The approach involves connecting blockchain networks to existing trading, custody, and settlement systems.
This measured adoption acknowledges decades of operational norms in finance. It also helps mitigate inherent risks associated with novel technologies in heavily regulated environments. The focus remains on leveraging current investments while incrementally adopting new capabilities.
Uneven tokenization adoption across sectors
While the overarching commitment to tokenization is strong, adoption rates differ significantly among financial sectors. Capital markets firms are leading the way, with 44% already having tokenization initiatives in production or operating at scale. These firms are typically involved in issuing and trading securities.
Asset managers show a more moderate adoption. Here, 20% report live tokenization initiatives. The survey did not provide a specific percentage for wealth managers with similar projects in production or operating at scale. This highlights varying levels of engagement across the industry.
Future of tokenized funds and equities
The survey also offers insights into where firms expect tokenization to gain traction most rapidly over the next five years. About 80% of respondents believe tokenized mutual funds and money market funds will play a meaningful role. This aligns with the rapid growth already seen in products like BlackRock’s tokenized Treasury fund.
However, optimism for tokenized equities is somewhat lower. Only about half of respondents expect similar widespread adoption for equities over the same period. This suggests a more cautious outlook for highly liquid and heavily regulated stock markets. The challenges for these asset classes may be more pronounced.
Driving forces and strategic benefits of tokenization
The accelerating interest in tokenization comes from several compelling advantages it offers financial institutions. Proponents point to its potential to streamline settlement processes, which can be slow and complex in traditional finance. Tokenization also promises to lower operating costs by automating many manual tasks and reducing intermediaries.
The ability for assets to trade around the clock, 24/7, is another significant draw. This expands market accessibility beyond traditional business hours. Moreover, tokenization makes it easier to divide high-value assets into smaller ownership stakes, potentially democratizing access for more investors.
Operational efficiencies and new capabilities
Tokenization stands to reshape how assets are issued, traded, financed, and serviced, offering greater distribution potential. It can also unlock new product capabilities. This move toward digital representation on a blockchain allows for programmable finance, embedding terms directly into the asset itself.
Such innovations pave the way for more dynamic and responsive financial instruments. These advancements contribute to more efficient global, secure, and real-time financial transactions. The underlying technology helps firms realize considerable operational efficiencies, benefiting both institutions and their clients. Reports have highlighted specific firms leading on-chain finance infrastructure, showcasing ongoing progress.
Industry milestones validating the shift
Over the past two years, major financial institutions have launched tokenization initiatives, further validating its potential. BlackRock’s tokenized Treasury fund has become one of the largest blockchain-based investment funds, showing strong institutional confidence. Franklin Templeton also offers tokenized money market funds, providing practical use cases for digital units.
JPMorgan has expanded its blockchain-based settlement through its Kinexys platform. Firms like Visa and DTCC are actively building infrastructure to support tokenized payments and securities. Just yesterday, DTCC completed its first live production trades involving tokenized securities, a concrete step toward bringing blockchain into traditional financial markets.
Overcoming obstacles in tokenized markets
Despite the growing enthusiasm, the path to widespread tokenization still faces significant hurdles. Regulatory uncertainty remains the most commonly cited challenge, creating a cautious environment for innovation. The lack of clear, consistent regulations across jurisdictions makes it difficult for firms to confidently invest.
This regulatory ambiguity can slow progress. Institutions often prefer clearer guidelines before committing significant resources to new technologies. The operational complexity of integrating blockchain into existing financial systems also poses a major challenge. These integration issues include data synchronization, security protocols, and ensuring seamless workflow, particularly as crypto security becomes an AI arms race for compliance teams.
Future investment and market transformation
The outlook for tokenized markets remains decidedly positive, despite current challenges. Nearly one-third of surveyed firms plan to increase their investment in tokenization projects by 26% to 50% or more over the next two years. This commitment underscores a belief that long-term benefits will outweigh immediate complexities.
The financial industry largely expects tokenization to fundamentally reshape markets. About 68% of respondents anticipate at least a partial transformation of financial markets within the next three to five years. This indicates a strong conviction that tokenization will expand from specialized applications to broader market impact.